Public goods are characterized by being:

A Only government-provided

B Non-excludable and non-rivalrous — one person use does not diminish another and people cannot be prevented from using them

C Always free

D Private sector goods

✓ Correct Answer: Option B

Public goods: non-excludable (can not prevent use) + non-rivalrous (one use does not reduce availability). Examples: national defense, clean air. Market underprovides → government intervention.

💡 Why is B) the correct answer?

The correct answer to the question "Public goods are characterized by being:" is Option B: Non-excludable and non-rivalrous — one person use does not diminish another and people cannot be prevented from using them.

The other options — A) Only government-provided, C) Always free, D) Private sector goods — are incorrect for this Pre-MBA Exam Prep question. As explained above: Public goods: non-excludable (can not prevent use) + non-rivalrous (one use does not reduce availability). Examples: national defense, clean air. Market underprovides → government intervention.

📚 About This Pre-MBA Exam Prep Practice Question

This 2-level Pre-MBA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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Public goods are characterized by being:

✓ Correct Answer: Option B

📚 About This Pre-MBA Exam Prep Practice Question

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